No matter the type, the regulatory environment affects the activity of Business Angels. In general, governments are attempting to promote angel activity through tax incentives. Three main lines can be identified:
- Upfront relief on amount invested
- Tax reliefs on returns
- Loss relief
Overall, it is challenging for governments, market participants, ecosystem builders to measure the activity of Business Angels and the amount of angel investments. The structured networks, clubs and platforms where much of the known activity takes place represent only a part of the ecosystem. There is a large ‘invisible market’ outside these ‘visible’ structures.